Hires on the rise

China may finally be opening up following restrictions due to the Covid-19 pandemic, which will undoubtedly breathe life into several sectors, but it’s not immune to the current litany of challenges facing economies globally.

‘The big shift in China’s Covid policy has created positive sentiments in the market on economic growth,’ says Sean Li, country manager for China at Robert Walters. Yet geo-political uncertainties, such as ongoing trade disputes and the crisis in Ukraine, have had a marked impact on companies still reserved in their investment plans.

‘They are very sensitive about costs and ask for higher return from their investments. Most high-tech and internet giants are streamlining their businesses, resulting in massive layoffs.’

Nevertheless, corporate demand for accounting staff will gradually resurface in 2023 to meet business growth goals and fulfil hiring demands backlogged due to the Covid-19 pandemic, adds Nicole Gorton, director APAC at Robert Half.

This will allow the country’s accounting profession to continue its globalisation-fuelled evolution. ‘China’s accounting industry has become more mature, and related industry laws and regulations have been gradually refined. With the improvement of accounting systems, high-end accountants are increasingly in demand,’ says Gorton.

But therein lies a snag, one felt by entities almost anywhere in the world employing accounting and finance professionals — a challenging talent pipeline.

‘At present, the domestic accounting talent market is steadily being polarised, with marked saturation of general accounting talent at one end and a severe shortage of senior accounting talent at the other, to the extent that senior accountants have to be introduced from other countries,’ says Gorton.

Sectors and roles

Broadly speaking, the industries seeing the most hiring activity as we enter 2023 are industrial & manufacturing, chemicals, logistics & freight forwarding and FMCG/retail. Then there are the well-documented fluctuations of needs in the high-tech, semiconductor, internet and real estate sectors.

The roles most in demand are finance director, FP&A manager, CFO, finance business partner, IT finance, internal control, process automation and digitisation.

The main trends WeiWei Cao, regional director at Michael Page China, sees are employers increasingly seeking out professionals with financial digital implementation and management experience.

It’s a point Li at Robert Walters echoes: ‘For most mid-large organisations, spending on the digitisation and process automation of the finance function will be increased, with a goal to ultimately reduce costs.’

Meanwhile, professionals who can demonstrate strategic vision, the ability to drive business and refined management skills are also critical requirements. ‘It is important to note that finance plays an increasingly significant role in a company’s strategic decision-making process, especially in the capital market,’ says Li.

There is also a growing demand for finance business partners and FP&A positions due to the need for better cost control and pressure on sales growth within a challenging economic environment.

Salary movements

‘We anticipate 15-20% increases in salary at the junior level, 10-15% at middle level and 0-10% at senior management,’ says Cao.

‘The overall salary adjustment rate in the China market has levelled off compared to that in previous years, and substantial pay raises have become less likely in the current employment market,’ says Gorton.

‘Post Covid-19, many candidates have learned to manage their expectations and are more rational about year-end bonuses and pay raises from changing jobs in 2023.’

In general, all levels will remain relatively stable, with domestic Chinese companies more willing to pay higher salaries for well-trained professionals from foreign companies, says Li.

Within this, more attention is being given to retention strategies, as well as to ways to enhance salary packages to attract and retain the most valued skillsets. ‘This includes companies leveraging equity incentive plans and talent support policies to boost their appeal, rather than simply beefing up the package with higher pay,’ notes Gorton.

Beyond the money

‘The most common benefits in the Chinese jobs market include supplementary healthcare benefits, housing allowances, stock options, annual leave, working from home, and training and skill enhancement opportunities,’ says Gorton.

Yet now more than ever, employees want a choice, says Cao. ‘As we see office environments become more open across most markets, employees demand the ability to choose where and when they work. There is no one-size-fits-all solution, with employee preferences fluctuating across different job types and industries. Employers should consider redesigning the playbook from a more people-first perspective.

‘The past 24 months have revealed people’s desire for flexibility and autonomy over their jobs. Employees want pay, bonuses, benefits and rewards, but more than ever they want to feel valued and heard by their employers.

‘Soft talent motivators are more important than ever. While companies must remain competitive when it comes to compensation, the kingmaker in this talent-driven market will come down to motivators that have a deeper, more personal impact on people, such as values, career progression, purpose, culture and leadership.’

Indeed, flexible employment is increasingly being considered by Chinese professionals, who are placing benefits and hybrid working arrangements high on their priority list when looking for new work, says Gorton.